Digital Platforms

New York - XL Insurance, the global insurance operation of XL Capital Ltd., has completed the purchase of Global Asset Protection Services LLC (GAPS) from Swiss Re. GAPS is a provider of unbundled loss prevention consulting services, offering individually tailored risk management solutions to risk managers, insurance brokers and insurance company clients operating on a global basis.

Frisco, Texas - Mark Depker, president of Hall Financial Group's management division, announced Skywire Software signed a new 49,500-square-foot lease for its new worldwide corporate headquarters at 3000 Internet Blvd. in the Hall Office Park development in Frisco, Texas.

Portland, Ore. - Kryptiq Corp., a provider of healthcare connectivity solutions, was recently acknowledged at the annual Portland Business Journal banquet honoring the most-admired companies in Oregon. The company received recognition as the fifth most-admired technology company, as determined by a survey of more than 2,000 Oregon CEOs.

Washington – The House passed a seven-year extension to the Terrorism Risk Insurance Act (TRIA) by a margin of 360-53. The passage of bill, which mirrors a version passed by the Senate, paves for the way for a signature by President Bush, who had threatened to veto a more ambitious TRIA extension passed by the House in September.

There is overwhelming evidence that spending on servers is slowing down significantly across a number of market sectors, in some cases by up to a factor of five, according to research conducted by TechNavio from Infiniti Research.

Cary, N. C. - Nationwide Mutual Insurance Co. is bolstering its enterprise risk management (ERM) program with the implementation of business intelligence from SAS, the companies report.

On the heels of its merger with LIMRA, LOMA is offering conferences at the beginning of the new year designed to help insurers capitalize on the technologies that will enable them to do more business, and do it better.

Windsor, Conn., and Atlanta - Member companies of LIMRA International and LOMA voted overwhelmingly in favor of the proposal to unite two of the world's largest insurance and financial services trade organizations. The merger will go into effect on Jan. 1, 2008.

Washington – A bill that would provide $100 million in grants to help local officials enforce building codes has been introduced into the House. Rep. Dennis Moore, D-Kan., sponsored the legislation, which is dubbed The Community Building Code Administration Grant Act of 2007.

Atlanta - Connecture Inc., provider of Web-based sales, service and process automation solutions to the health insurance industry, has been awarded the Robinson College of Business (RCB) Eagle Award. The business school selected Connecture as a high achiever among fastest growing private companies in the Southeast.

Approaches to policy administration systems may differ from region to region, but the factors driving replacement are similar.

Customer service, risk management and demographics will mark 2008.

New York — Execution is taking precedence over profit and top-line growth as a focus for CEOs around the world, according to a survey of 769 global CEOs from 40 countries from The Conference Board report, CEO Challenge 2007: Top 10 Challenges. The annual report, conducted during the first quarter of 2007, details specific challenges that CEOs face across regions, as well as by the company’s size, industry, and level of success—all factors affecting the concerns of CEOs.

Regulators advise the public to become aware of ID theft vulnerabilities, while carriers are using technology and third-party help to thwart the bad guys and bolster customer services levels.

Trenton, N.J.– A bill that will eliminate the requirements for auto insurance agents to provide quotes for all their companies and to provide three insurance scenarios to applicants has passed the New Jersey Legislature.

As mortgage lenders struggle to contend with the double-barreled threat of rising defaults and lower origination volume, a third, less discussed source of risk is now starting to emerge.

Arson Registry Act Passes House

New York — In the actuarial world, process inefficiencies, increased business complexity, regulatory demands and data volume are leaving little time for crucial analysis, driving a growing trend toward automation, according to a roundtable hosted by The Insurance and Actuarial Advisory Services (IAAS) practice of Ernst & Young LLP, (E&Y) New York.

USAA and State Farm provide the best customer experiences, according to consumers surveyed by Forrester Research Inc.

Two teams of conferees headed by Senate Banking Committee Chairman Christopher Dodd (D.-Conn.) and House Financial Services Committee Barney Frank (D.-Mass.) are meeting this week in an attempt to reconcile their differing visions on the extension of the Terrorism Risk Insurance Act.

Washington – Owing in part to an association with senior insurance company executives who desire improvements in the agency distribution system for insurance products, the National Association of Professional Insurance Agents (PIA National) released an online planning tool for its members.

Despite celebrating its one-year anniversary last week, the popular press is reporting the insurance industry at large still seems to be taking a “wait and see” position on large-scale implementation of Microsoft’s Vista.

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Thanks to new technologies, carriers are unearthing fraud such as "rent-a-patient" schemes and physician upcoding.

Dayton, Ohio — Nationwide Mutual Insurance Co. has been recognized for its innovative use of technology across and beyond the business to create and sustain highly significant and quantifiable business value, according to DM Review magazine and the Teradata Corp., division of NCR, a Dayton, Ohio, data warehousing and business intelligence technology provider.

In a new 68-page report entitled 'BPO Opportunities in the Property & Casualty Insurance Sector,' analyst John Willmott finds that P&C insurers perceive themselves to be in a mature and highly competitive industry where process cost reduction and continuous service improvement are viewed as far more important mechanisms for achieving improvements in competitive positioning than process innovation.

Washington – An extension to the Terrorism Risk Insurance Act (TRIA) has passed the U.S. Senate. The measure was approved by unanimous consent. The original TRIA was passed in wake of 9/11 and is set to expire on December 31.

Philadelphia — CIGNA Corp. is expanding into the small-group healthcare market with the announcement of its intention to pay $1.5 billion in cash for Great-West Healthcare, a deal that is expected to close during the first half of 2008, subject to regulatory approval. The Philadelphia-based carrier, whose CIGNA HealthCare business is based in Bloomfield, Conn., said it plans to fund the deal through cash and debt, and that it will also inject approximately $400 million of capital into its subsidiaries to support the acquired business.

Los Angeles – Using the 2006 fatal crash data released by the U. S. Department of Transportation just weeks ago, Farmers Group Inc. has completed a study to determine the most influential factors in drivers’ mortality rate in multi-vehicle accidents.

Washington — Insurance industry associations are obliging to a request for comments by the U.S. Treasury Department as it conducts a review of the regulatory structure associated with financial institutions. Several associations used the opportunity to reiterate their opposition to the creation of the optional federal charter (OFC) for the insurance industry. Senators Tim Johnson, D-N.D. and John Sununu, R-N.H., introduced the National Insurance Act of 2007 into the upper house in May.

Needham, Mass. — The insurance industry has relied upon the independent agency system as a main distribution channel for decades. However, new business concerns are threatening its success and even its existence, according to recent research from Needham, Mass.-based TowerGroup Inc.

Needham, Mass — While the insurance industry has not typically been known for leading in technological innovation, new TowerGroup Inc. research finds that rapid advancements in technology are poised to reshape the insurance landscape over the next five to 10 years.

London – As recently as a decade ago, most carriers did not consider the potential ramifications of emerging nanotechnologies. Now, even Lloyd’s of London is acknowledging the risks and opportunities that nanotechnology presents. The London-based firm, in collaboration the London-based Lighthill Risk Network, not-for-profit science organization, is hosting a half-day seminar in the Old Library on December 10 to discuss the topic.

Oakland, Calif. — Kaiser Permanente has received the "Recognizing Innovation in Multicultural Health Care Award" from the National Committee for Quality Assurance (NCQA) for its efforts to provide health plan members across the country with culturally and linguistically appropriate health care services.

Washington – An extension to the Terrorism Risk Insurance Act (TRIA) has passed the U.S. Senate. The measure was approved on Friday by unanimous consent. The original TRIA was passed in wake of 9/11 and is set to expire on December 31.

Mayfield Village, Ohio - In early September, The Progressive Group of Insurance Cos., based in Mayfield Village, Ohio, announced a reorganization designed to increase the company's ability to execute on key strategies, lower its non-claims expense ratio and foster growth through more competitive pricing, improved customer retention and an increased focus on brand development. The reorganization included combining its agency and direct businesses into a single personal lines organization.

Mayfield, Ohio - With an overarching goal to create a safer driving experience for its customers, The Progressive Group of Insurance Cos. is offering a virtual driving experience to existing and potential customers across America. The carrier is teaming with Metro City Group, a Laguna Niguel, Calif., owner of a 68-foot multimedia-equipped tractor-trailer, to provide drivers with the chance to test their skills in practical behind-the-wheel driving situations in a safe, virtual environment. With their eyes on the road and their hands securely placed at the “nine” and “three” positions on the steering wheel, people who experience the Progressive Driving Skills Simulator will increase their knowledge of the rules of the road and be better equipped to handle any driving situation. The driving course curriculum includes real-life situations--such as driving in high traffic, congested areas, through foggy or rainy weather or simply passing and yielding to other drivers--and the virtual technology system measures drivers' responses, reaction times, crash reduction techniques and general driving knowledge. "The interactive experience of the Progressive Driving Skills Simulator gives people the chance to 'test drive' their skills in all types of driving situations, which we hope will prepare them for driving on the real--not virtual--road," said Progressive product manager Mike Storbeck from the company's headquarters in Mayfield, Ohio. "Our objective has always been to redefine drivers education and provide a practical training program that gives people a chance to test, and practice, their skills in a safe, simulated environment," said Tim Albright, president of Metro City Group, owner of The Simulator. "We are looking forward to working with Progressive, and are sure that, together, we can make our roads safer and more enjoyable for everyone." Over the next several months, the Progressive Driving Skills Simulator will travel to many local events in the Western United States, including Motor Trend Auto Shows, state fairs and other automotive industry-related events. More information is available at www.progressive.com or www.streetsimulator.com. Source: Progressive Group of Insurance Cos.

Washington – The Homeowners' Defense Act of 2007, introduced into the upper chamber by Senators Hillary Clinton, D-N.Y., and Bill Nelson, D-Fla., aims to address availability and affordability of natural disaster insurance.

Washington – A Bill to revamp the National Flood Insurance Program has left the Senate Banking Committee and is set for the floor. To the delight of many, the Senate version does not add coverage to wind losses to the program.

Kansas City, Mo. – The National Association of Insurance Commissioners (NAIC) has responded to a letter from a coalition of consumer groups that questioned the impartiality of the recently adopted revisions to the NAIC Viatical Settlements Model Act with a letter of their own.

Bismarck, N.D. – A coalition of consumer representatives have asked the National Association of Insurance Commissioners (NAIC) to revisit the recently adopted changes to the viatical settlement model law. In a letter, the group raised the specter of conflict of interest, and urged NAIC to strengthen its policy regarding it.

Washington – Legislation introduced in the House aimed at revamping the National Flood Insurance Program (NFIP) is garnering praise. H.R. 3959, sponsored by Rep. Scott Garrett (R-N.J.) and Financial Services Committee Chairman Barney Frank (D-Mass.), proposes to gradually phase out some of the subsidies in the program.

Philadelphia - For nearly two decades, consulting firms, technology companies, R&D-driven corporations and other knowledge-intensive organizations have made significant investments in "knowledge management" initiatives. These initiatives are intended to facilitate the capture and transfer of company expertise as a way to spur learning and innovation.But research by Wharton management professor Martine Haas and Morten Hansen, professor of entrepreneurship at INSEAD, indicates that knowledge sharing efforts often fail to result in improved task outcomes inside organizations—and may even hurt project performance. However, organizations that plan carefully before launching a knowledge-sharing initiative, and support these efforts along the way, have a much better chance of adding value, the researchers say.

Washington - A notice published in the Federal Register seeking comments for a broad Treasury Department review of financial regulation is biased in favor of federal regulation of insurance and foreign business entities, according to the Alexandria, Va.-based National Association of Professional Insurance Agents (PIA).The specifics of the Nov. 11, 2007 published notice "raise critical concerns about the direction, purpose and intent of the review process itself, concerns we are compelled to address directly to you at this time," states PIA in a letter to Treasury Secretary Henry Paulson.

Stamford, Conn.—A recent release from Pitney Bowes Inc. announced its Pitney Bowes Group 1 Software and Pitney Bowes MapInfo business units, acquired separately, will combine into a single software company. The move is effective immediately, and the businesses will merge operations over the next several months.

Washington — The Office of Management and Budget has released a "statement of administration policy" threatening a presidential veto of legislation aimed at extending the Terrorism Risk Insurance Act (TRIA).

Washington — Insurance industry associations are giving mostly favorable reviews to the passage of H.R. 2761, legislation that would extend and expand the Terrorism Risk Insurance Act (TRIA). The bill, which passed the lower chamber yesterday by a vote of 312-110, aims to extend TRIA for 15 years, and expand the number of lines covered within it.

Needham, Mass. — A new research report from TowerGroup Inc. says insurers should go above and beyond current regulatory requirements when dealing with the issue of annuity suitability.